Here are some hints that institutional interest in cryptocurrencies is growing

While markets were bleeding in the last couple of months, institutional interest seems to be at an all-time high meaning that there still seems to be demand behind the new technologies that cryptocurrencies embody.

We collected some very clear hints that outside money might be looking to enter these new markets and you can decide for yourself on what the current stance of the market is.

Exchanges welcome institutional accounts

Recently exchanges started welcoming institutional investors with their very own account types. Poloniex’s announcement, made earlier December, included the launch of such accounts tailored at the needs of large and small institutions as well. The features include dedicated support, robust API services and higher withdrawal limits. The onboarding process is also guided and followed closely by the Account Managers of the U.S.-based exchange.

Only a few days later Binance, the leading Cryptocurrency exchange, went forwards with the launch a similar account type aimed at capturing the same target market. Institutions will be granted new sub-account features including improved managerial control and asset audit tools. Binance will now allow the creation of up-to 200 sub accounts that can be managed by the same organisation’s account, while the master accounts will be able to grant different access levels and set permissions to the rest. The exchange stated that this was between the most asked features for a reason in the implementation.

Rising market caps on regulated stablecoins

Stablecoins such as the Circle backed USDC, the Gemini backed GUSD, TUSD or Paxos have been all introduced to the market only this year as competition to Tether (USDT). Even though these USD pegged stablecoins are relative new, collectively they managed to build up market caps way above 600 million USD.

Only one of the 4 is behind the rest, GUSDs are collectively worth $88 million. TrueUSD is leading the herd with a market cap of $209 million, but this is also the oldest of the bunch with the first tokens/coins being issued back in April.

The most interesting numbers were produced by Paxos and USDCoin, both project came online around September/October and managed to capture $178 million and $189 million in backing respectively.

These numbers clearly show that there is money flowing into the cryptocurrency market through regulated channels. This of course doesn’t necessarily mean that the money is already buying, but still clearly shows the interest in the market.

(Image taken from coinmarketcap.com)

Exchanges being launched by stock market giants

This news isn’t fresh, but still very relevant to the topic. There has been a growing trend between large institutions that includes the launch of Digital Asset exchanges.

The first one that caused media turmoil was the announcement of Bakkt, an upcoming physically delivered Bitcoin futures exchange that is being backed by the market infrastructure and technology of NYSE exchange owner Intercontinental Exchange. The launch of the trading has been delayed until January to make sure every legal proceeding has been dealt with, but it is still one of the most awaited events of the crypto community as it will give additional validity to Bitcoin.

The second exchange, which is being developed as a direct competitor to Bakkt, is ErisX. Main investors include TD Ameritrade, Fidelity, Nasdaq Ventures and more. Institutional and individual users will be able to trade Bitcoin, Ethereum and even Litecoin on the upcoming Chicago-based U.S. regulated exchange.